Builder Funnel Protocol
March 22nd, 2024

Abstract

The Builder Funnel Protocol introduces a decentralized system designed to build trust and reputation within the blockchain ecosystem. This protocol leverages a gamified eth escrow payment system to incentivize both sponsors and contributors to engage in a transparent, merit-based platform for decentralized projects where builders can start earning 0.01eth/hour up to 1.28eth/week.

Introduction

The Builder Funnel is a conceptual protocol on how to onboard and reward builders financially in a way that builds trust and identify builders that can deliver with quality and consistency.It's far from an ideal model, but instead it's the seed to scale rewards for builders. I came up with the idea of the Builder Funnel Protocol in the beginning of 2023. The image is a screenshot of a whiteboard that I have it since then.

Whiteboard brainstorm for Builder Funnel Protocol from 02/26/2023
Whiteboard brainstorm for Builder Funnel Protocol from 02/26/2023

Protocol Overview

The Builder Funnel Protocol is structured into eight levels, each with varying entry costs and sponsorship rewards. The tiered system ensures that entry into the protocol is merit-based and earned through contributions and sponsorships. Everyone that wants to join and earn starts on level 1 earning 0.01eth for one hour of their collaboration.

Level Structure

  • L1 - L8: Each level represents a step in the funnel with specific entry costs ranging from 0.01 eth for one hour of delivered value up to 1.28 eth for one week of delivered value. This creates an incentive ladder, encouraging upward mobility through contribution and collaboration. Anyone can needs to start with L1. But only those with L1 level can get to L2. You can not skip levels. Which means every evolution of the process is validated.

Sponsorship Model

  • Sponsorship Commitment: A full round of sponsorship can be achieve with a total commitment of 10.24 ETH, allocated across the levels to support the development and operation of the protocol to sponsor a total of 128 builders that would go up from level 1 to level 8.

  • Sponsorship Benefits: Sponsors receive visibility within the platform, influence in governance decisions, and a share of the rewards proportional to their contributions.

Governance Model

The governance of the Builder Funnel Protocol is based on a model where minted NFTs represent varying levels of governance power. But a bootstrap model can be achieved with crowdfunding, with something like Juicebox, for the first round of 1.28eth to sponsor the first 128 builders. And since reaching out to a full set of 128 builders might not be feasible, a first approach can be achieved in rounds such as: 1 builder, +2 builders, +4 builders, +8 builders, +16 builders, +32 builders, +64 builders. With each builder receiving 0.01eth.

Minting and Power Levels

  • Minting sponsorship NFTs: Governance NFTs are minted according to the participant's level and contributions within the protocol. According to the amount of sponsorship you can burn sponsorship token to receive a sponsorship L1. And with that would allow you to sponsor level 2, and mint a sponsor level 2 NFT, and repeat the process until level 8.

  • Minting builder NFTs: The builder NFT would follow the same approach where L1 builders would mint L1 builder NFTs that would allow them to go to level 2, where they could mint L2 NFTs and repet the process until level 8.

  • Power Levels: These NFTs confer voting rights and governance powers, aligning with the protocol's meritocratic ethos.

Economic Model

The economic foundation of the Builder Funnel Protocol is built upon the principles of transparent and fair monetary exchange.

Entry and Rewards

  • Entry Prices: To maintain a barrier to entry that ensures commitment, each level has an associated cost.

  • Escrow and Rewards: Funds are held in escrow and released upon the completion of milestones, rewarding participants and ensuring accountability. Built also limiting sponsors to the levels that they are also allowed. Both builders and sponsors needs to earn their trust.

Community and Sponsorship

A strong community and active sponsors are the backbones of the protocol.

Roles and Contributions

  • Community Members: Can participate at different levels, with the opportunity to climb the ladder by successfully completing tasks and being active in the ecosystem.

  • Sponsors: Are crucial for the initial funding and ongoing economic support of the protocol.

Feedback and Iteration

The protocol incorporates a feedback loop that allows for constant evolution and adaptation.

Incorporating Feedback

  • Community Input: Feedback from community members is considered for the iterative improvement of the protocol.

  • Updates and Improvements: Regular updates will be implemented based on constructive community feedback.

Security and Risk Management

Security is paramount in the Builder Funnel Protocol, with multiple layers of risk management.

Mitigation Strategies

  • Security Measures: The protocol includes robust security measures to prevent unauthorized access and attacks.

Roadmap

The development of the Builder Funnel Protocol starts with a crowdfunding on Juicebox focusing on raising 1.28eth for the first round, where in fact, it can start with 0.01eth.

Milestones

  • Release of the whitepaper: Put the idea out for the world.

  • Start crowdfunding: Starting small (0.01eth), but with large gobal scale goals.

  • Sponsor the first L1 builder: It starts with a person.

  • Sponsor the first batch of 127 builder: And becomes a community.

  • Sponsor the first L8 builder: Reward and recognition is reached with consistency.

  • Sponsorship DApp: With the DApp, selected experienced community members can start scaling the process.

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